Can a mortgage offer be withdrawn?

[Big Blue Plymouth]

I'm guessing there are a number of reasons why it could but this is the situation I'm in:

I've had a mortgage offer based on the fact that at the time I'd had no more than 3 months of the last 12 on the bench (this situation has now changed).

I have a buyer & am ready to complete except that there are some holdups on my purchase & my buyer isn't prepared to wait so the vendor of my new place is prepared to let me rent for a few weeks until the legal stuff is sorted out.

Can't help feeling that this leaves me very exposed because I could sell my place, move in to the new place & a few weeks down the line the mortgage co. decides to do some audit & sees I've had no income for the past 10 weeks & withdraws the offer leaving me with no house & presumably no leverage to even get another mortgage for the foreseeable future.

Anyone got any thoughts on this?

[Andy O]

When I received my mortgage offer it was valid for 3 months. When I had delays I contacted them and they extended for one further month.

[northernladuk]

You dont have much luck do you.

[SueEllen]

You dont have much luck do you.

Harsh...

[TestMangler]

Harsh...

But fair.....

[Big Blue Plymouth]

You dont have much luck do you.

I'm buying some additional land as part of the transaction. Turns out that the piece of land doesn't appear to be registered to the vendor ( or anyone else) so I can't buy it and have it registered in my name until that's cleared up.

Don't particularly like the idea of completing on the sale before I complete on the purchase as there's a chance I could end up homeless if the mortgage co were to reassess my offer and pull it owing to my added bench time.

Anyhow, shall speak with my mortgage advisor as I'm supposed to be completing today

[doconline]

I'm buying some additional land as part of the transaction. Turns out that the piece of land doesn't appear to be registered to the vendor ( or anyone else) so I can't buy it and have it registered in my name until that's cleared up.

Don't particularly like the idea of completing on the sale before I complete on the purchase as there's a chance I could end up homeless if the mortgage co were to reassess my offer and pull it owing to my added bench time.

Anyhow, shall speak with my mortgage advisor as I'm supposed to be completing today

IANAL but if you are completing today, you will already have exchanged contracts etc which means you are legally bound to the sale as everything will already be in place. The mortgage will have been approved a while now and it's just waiting for them to release the money your solicitor etc. All their processes / checks etc are complete, so you won't have anything to worry about.

[doconline]

I'm guessing there are a number of reasons why it could but this is the situation I'm in:

I've had a mortgage offer based on the fact that at the time I'd had no more than 3 months of the last 12 on the bench (this situation has now changed).

I have a buyer & am ready to complete except that there are some holdups on my purchase & my buyer isn't prepared to wait so the vendor of my new place is prepared to let me rent for a few weeks until the legal stuff is sorted out.

Can't help feeling that this leaves me very exposed because I could sell my place, move in to the new place & a few weeks down the line the mortgage co. decides to do some audit & sees I've had no income for the past 10 weeks & withdraws the offer leaving me with no house & presumably no leverage to even get another mortgage for the foreseeable future.

Anyone got any thoughts on this?

Also, how / why would they audit you? You won't be putting in a new application, as far as they are concerned if you make the payments it's all good. Flags would only be raised if you missed payments. Depending who your lender is, they will have thousands and thousands of clients, so won't be looking at things on such a granular level, as to constantly monitor their clients circumstances.

[BrilloPad]

What holdups are on your purchase? Suppose they are not resolved?

I doubt very much the mortgage lender will find out. But personally I would not risk it.

[Lance]

When you say you have a mortgage offer, do you mean approval in principle? Generally you don't ever get a approval until you actually finish the deal as things change (market prices, their risk aversion, you), so I'd say it's never done till it's done.

Land with no owner. I have a strip of land on my property that I have 'bought', but as the Land Registry have nor record of who owns it, the vendor bought some indemnity insurance for the sale. It covers me for the full purchase price of the whole property and cost them around £100. I suggest you get your solicitor on this as it's what they are paid for.

If you're completing today what's the issue?
All other issues will have been covered by your solicitor, and if he's screwed up he has PI insurance.

Also, if you're buying and selling at the same time the solicitor, again, will have this in control. No sale on your property = no purchase of the next property. This is commonplace and why the UK has a reasonably functioning housing market (lack of supply notwithstanding).

Forget the mortgage adviser. They are usually doughnuts.

You do have a solicitor don't you?